@jidasounish
Another strategy views stablecoins as a tactical buffer that enables dynamic rebalancing. Investors may systematically rotate between volatile assets and stablecoins based on volatility thresholds, momentum signals, or macro indicators. Within a diversified portfolio, stablecoins act as a volatility dampener, lowering overall portfolio variance and improving risk-adjusted returns, especially when traditional hedging instruments are unavailable or inefficient in crypto markets.
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